Gold News

Gold & Silver Gain as Oil Rises, Dollar Falls, US Job Losses Slow

From Chris Mullen at

Gold traded modestly lower in early Asian trade on Wednesday, but it then steadily climbed back higher in London and New York and ended near its high of $911.47 per ounce with a gain of 0.7%.

The Gold Price in Euros rose near €685 as the US Dollar index fell ahead of Thursday's central bank meetings in London and Frankfurt, expected to announce only modest interest-rate cuts and further quantitative easing, if any at all.

Oil climbed to new highs for the year above $56 as jobs data raised hopes for improving demand and inventory reports were not as bearish as expected.  Crude inventories rose just 600,000 barrels, gasoline inventories surprisingly fell 200,000 barrels, and distillates rose 2.4 million barrels.

Treasuries ended just slightly lower on better than expected economic data as a 10-year note auction drew strong demand.

The Dow, Nasdaq, and S&P overcame worries over the banks and rose on encouraging jobs data.

Silver traded slightly lower in Asia and near unchanged in London before it jumped higher in early New York trade and ended near its high of $13.82 with a gain of 2.5%.

Platinum gained $6 to $1133, and copper gained over 10 cents to about $2.19.

Gold Mining and silver equities rose over 3% at the open before they pared their gains a bit in late morning trade, but they then rose to new highs in afternoon action and ended about 5% higher on the day.

Wednesday meantime brought news that US business shed 491,000 jobs in April – far fewer than the 645,000 predicted for the ADP private-sector payroll report, and slowing the rate of 2 million jobs lost already this year – Thursday brings Initial US Jobless Claims for last week, plus first-quarter Productivity (expected up 0.6%) and Unit Labor Costs (expected 2.7% higher from the same time a year ago).

Consumer Credit for March is expected to show a $4.0 billion decline.

Chris Mullen is chief content manager of the GoldSeek family of websites, a leading source of gold news, comment and mining-stock data for private and institutional investors.

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